1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
miv72 [106K]
4 years ago
10

How is foreign exchange management (FEM)the core issue in international finance and how does it affect balance of payment

Business
1 answer:
V125BC [204]4 years ago
4 0

Answer:

Foreign Exchange Management (FEM) is the core issue in international finance in that it helps facilitate external trade and maintenance of foreign exchange.

FEM is a tool used by Central bank to adjust currency flows to offset the international exchange of funds thereby effecting balance of payment equilibrium.

Explanation:

Foreign exchange management is  a protective measure against the adverse impact of unanticipated changes in exchange rates. It is at the core of International Finance.

The central bank liaises with the International Monetary Fund, World Bank and other financial bodies to hedge against these unanticipated changes as a way of stabilizing exchange rates.

The balance of payments does not impact the exchange rate in a fixed-rate system because central banks adjust currency flows to offset the international exchange of funds.

You might be interested in
When the economy is operating at point C, the Federal Reserve may decrease the discount rate to
brilliants [131]

Answer:

D ; increase growth

Explanation:

The discount rate is one of the tools that the Federal Reserve uses to direct monetary policy.  Banks are subject to minimum reserves requirements. If a bank falls below this minimum, it can borrow from the banks with a surplus,  or borrow from the federal reserve. If it borrows from the Fed, the interest rate that applies is the discount rate. The discount rate is always higher than the fed fund rate; hence, banks use it as a last resort.

The discount rate and the fed rate have similar effects on the economy.  The Fed uses the discount rate to regulate the money supply in the country. When the growth in slow, the fed will reduce the discount rate.  A low discount rate means the cost of borrowing money goes down. The impact is that individuals and businesses will afford to borrow money for consumption and investment.

Increased levels of investments and consumption will mean a higher GDP, which is growth.

7 0
4 years ago
Which type of human resources job is likely to grow at a slower rate in the future?
Ilya [14]
I think D

If not try B
6 0
2 years ago
As a marketing manager for Kitch-It-Tools, Jim is frustrated with the way his organization markets their kitchen utensils. Curre
Rasek [7]

Answer:

c. mass marketing

Explanation:

The firm is practicing mass marketing because it has a strategy that is trying to sell the product on a large scale ignoring market segments and not trying to know its customers to be able to understand what they expect and like that target them in a more effective way.

4 0
3 years ago
What two project dimensions are components of project performance?
Allisa [31]
<span>The answer is "Scope and quality" are two project dimensions which are components of project performance.

Scope refers to the sum of products, services, and results which are provided as a project and if we define this more simply, it is the size of a project or task. Quality is defined as how well the segments or components satisfy the project requirements or necessities.</span>
5 0
4 years ago
Read 2 more answers
If patricia were to paint her living room alone, it would take 4 hours. her sister naomi could do the job in 5 hours. how long w
Mila [183]

Practicia completes the job in one hour = 1/4

Naoimi completes the job in one hour = 1/5

If Parcticia and Naoimi does it together,let us suppose in x number of hours.

The equation so form is:

(1/4)*x + (1/6)*x = 1 (i.e job finished)

The Least common multiple(LCM) of 4 and 6 = 12

12*(1/4)*x + 12*(1/6)*x = 12*1

Therefore, solving the equation we get,

3x + 2x = 12

5x = 12

x = 12/5

x= 2 2/5 hours or 2.24 hours

Therefore number of hours they took to complete the work is 2 hours and 24 minutes or 2.24 hours.

4 0
3 years ago
Other questions:
  • Standard mortgage loans require monthly payments typically composed of two components:_______.
    11·1 answer
  • Raw material inventory appears on the
    12·2 answers
  • "The common stock of One Community Bank is currently selling for $30. The last annual dividend paid was $1.25 per share and the
    5·1 answer
  • A wedding services company changes its marketing strategy to reflect the fact that more LGBTQ​ (lesbian/gay/bisexual/transgender
    9·1 answer
  • Salina, the expeditor at RingPro Gasket Manufacturer, writes a memo asking her manager to buy her a new computerized system for
    11·1 answer
  • Ellen offers to sell her math textbook to Julia for $50. Julia does not respond. Ellen and Julia do not have a contract because
    9·1 answer
  • Alex’s business is experiencing diminishing market shares and no longer needs any external finance. In fact, it is trying to buy
    13·1 answer
  • Last year, Cayman Corporation had sales of $7,000,000, total variable costs of $3,000,000, and total fixed costs of $1,500,000.
    8·1 answer
  • How do you make someone a brainly?
    8·1 answer
  • Fractional reserve banking
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!